NEW YORK/LONDON: Cocoa futures on ICE hit multi-month lows on Wednesday on improved weather in top producing region west Africa and as exchange stockpiles hit six-month highs.
Raw sugar also fell, while coffee prices rose.
July New York cocoa fell $34, or 1.4%, to $2,407 a tonne, having hit its lowest level since late November at $2,391.
Dealers said the industry had begun to cautiously hedge cocoa for next season but cited a continued risk that speculative funds may move to add more short positions.
ICE exchange stocks, meanwhile, hit six-month highs of 5.186 million 60 kg bags on Tuesday, data showed.
Traders were also focusing on improved crop prospects due to benign weather in top producer Ivory Coast.
September London cocoa fell 24 pounds, or 1.4%, to 1,730 pounds per tonne.
July raw sugar settled down 0.07 cent, or 0.4%, at 19.68 cents per lb.
India could start sugar’s new marketing year on Oct. 1 with carry forward stocks of 6.2 million tonnes even after exporting a record 10 million tonnes, the food ministry said.
India has imposed restrictions on sugar shipments by capping this season’s exports at 10 million tonnes.
Dealers said the India export cap was not hugely restrictive and was somewhat offset by news that Brazil’s President Jair Bolsonaro, in a bid to keep energy price rises in check, has ousted the new Petrobras CEO.
Brazil’s cane crush was below market expectation in early May, while sugar production continues to lag last year’s.
August white sugar rose $7.40, or 1.3%, to $563.90 a tonne.
July arabica coffee rose 3.4 cents, or 1.6%, at $2.1705 per lb??, having hit its lowest since mid-May at $2.1100 on Tuesday?.
Weather is expected to remain mostly dry over Brazil coffee areas in coming days, which will speed up the harvest in the world’s top grower.
July robusta coffee rose $45, or 2.2%, at $2,088 a tonne.